The London company market recorded a 10% increase in overall premium income in 2023, according to data released by the International Underwriting Association (IUA). Firms operating in the City earned £48.432 billion during the year, up from the previous year’s figures.
This total includes £42.995 billion underwritten directly in London, alongside £5.437 billion in controlled business written in other locations but managed through London-based operations.
One of the key drivers of this growth was treaty reinsurance, which saw a significant rise of nearly one-third in 2023. The IUA’s figures show that treaty reinsurance premiums grew to £10.889 billion, a marked increase from £8.248 billion in 2022. This substantial growth underscores the increasing importance of the treaty reinsurance sector within the London market.
In addition to the strong performance in reinsurance, premiums for direct and facultative contracts written by London companies also rose, reaching £32.106 billion in 2023. This represents a 9% increase from £29.378 billion in 2022, reflecting solid demand for these forms of coverage.
The IUA’s “London Company Market Statistics Report” saw more than 80 companies participated in the survey, which also compares the London company market’s performance with that of Lloyd’s.
For the first time, the combined premium income of both markets surpassed £100 billion. Lloyd’s reported £52.149 billion in premium income for 2023, bringing the total for the two sectors to £100.581 billion.
Property insurance remains the largest class of business for companies in London, accounting for just over £12 billion in premiums. Liability insurance is the second-largest category, generating approximately £6.2 billion, about half the total income from property.
Marine insurance overtook professional lines to become the third-largest class in 2023, with professional lines seeing a 5% decline in income to £5.159 billion. Other classes, including motor, accident and health, renewable energy, political risks, and cyber insurance, showed significant growth, with year-on-year increases of more than 15%.
Geographically, North America continues to grow in importance for premium written in London, now representing 23% of the market, while continental Europe’s share has decreased to 9%. For controlled premium written outside of London, however, continental Europe has grown in significance, accounting for 35% of this segment.
Despite changes in market structures following Brexit, the relationship between the London company market and the European Union remains strong.
IUA chief executive Dave Matcham (pictured above) highlighted the report's insights into the market’s role in the global financial landscape and the UK economy. He noted that the recent surge in treaty reinsurance premiums demonstrates the strength of the sector and its continued evolution.
“The London Company Market Statistics Report offers a unique insight into the specialist insurance and reinsurance business,” Matcham said. “We have seen significant investment in London operations, and the market continues to find solutions for complex risks."
He added that cyber and renewable energy premiums have risen significantly, reflecting the growing importance of these sectors and the role of insurers in supporting sustainability initiatives.
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